The budget lays out $4.5 billion for a Clean Energy Initiative, representing about $3.5 billion in additional spending for clean energy measures. The Initiative comprises an additional:

  • $1.365 billion in investment in up to four large scale solar generation projects
  • $2 billion in investment in industrial-scale carbon capture and storage
  • $100 million in additional funding for the establishment of Renewables Australia – a body that will support leading-edge technology research, development and demonstration projects.

The Solar Flagships program aims to create an additional 1,000 MW of solar generation capacity via four individual generation plants connected to the national grid. Made up of both solar thermal and solar photovoltaic technologies, the Government hopes that the combined electricity generation capacity of these projects will be equal to and greater than a current coal-fired power station.

The specific technologies used for the program will be assessed on their potential for industry development, including their capacity to boost domestic manufacturing and create future export opportunities.

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An additional $100 million, on top of the existing $365 million previously announced, will be invested to establish Renewables Australia, a body that will advise governments and the community on the implementation of renewable energy technologies, and support growth in skills and capacity for domestic and international markets.

Other significant funding or changes to green programs and renewable energies include:

  • $64.6 million will be invested over four years in energy efficiency measures, including improved energy efficiency labelling, the expansion minimum energy performance standards for appliances and equipment, and new minimum energy performance requirements for residential buildings and major renovations.
  • The Climate Change Action Fund announced in the CPRS White Paper, will receive an additional $300 million.
  • The Solar Homes and Communities Plan, which provides cash rebates for the installation of solar power systems on homes and community use buildings, will receive funding of $271.7 million to address the increased demand under the Plan.

As part of the Government’s response to the recommendations of the Wilkins Review, a number of existing climate change programs will not continue once the CPRS is introduced. Many of these programs were due to lapse on 30 June 2009. Clean energy-related programs that will cease include:

  • Renewable Energy Equity Fund
  • Low Emissions Technology and Abatement
  • Wind Energy Forecasting Capability
  • Low Emissions Technology Demonstration Fund
  • Renewable Energy Development Initiative

Also announced in the budget was new funding of $2 billion for carbon capture and storage projects under the Carbon Capture and Storage Flagships program.

The Climate Institute welcomed the Government’s Clean Energy Initiative.

“The multi-billion dollar Clean Energy Initiative, with existing funds and commitments, adds up to a smart cost and risk effective investment strategy in solar, wind, geothermal and potentially significantly reducing pollution from coal,” said Climate Institute CEO John Connor.